tu 


^^ 


UNlVt.w,..   Of   lUJNOIS 


'(&-»f^ 


S0MBKV1L.LJI.  MA^a, 


^-^^^e^ 


Is 


—-"fKe'^^p 


:^^^^5fc 


^^ 


TRUST  MORTGAGE. 


fcab^ntonrtl^,  9u\x)ttnct  anb  ^albtston 


RAILROAD  (X)MrANY, 


OF  KANSAS, 


TO 


THE  FARMERS  LOAN  AND  TRUST  COMPANY, 


OF    NEW    YORK. 


CHICAGO: 

Rounds  &  James,  Book  and  Job  Printers,  46  State  St. 


:^lt^' 


i:^^^^5v- 


— ..v.'^C^j^'VAv 


Vi^t^ 


K 


4^ 


J_ 


TRUST  MORTGAGE. 


*^ab^nto0rt]^,  latorrna  nnb  ffialb^6t0n 


RAILROAD  COMPANY,     . 


OF  KANSAS, 


TO 


THE  FARMERS  LOAN  AND  TRUST  COMPANY, 


OF    NEW    YORK. 


CHICAGO: 

Rounds  &  James,  Book  and  Job  Printers,  40  State  St. 

1869. 


V-   - 


L57-fc 


TRUST  MORTGAGE. 


LEAVENWORTH,    LAWRENCE   AND    GALVESTON 
RAILROAD  COMPANY,  OF  KANSAS, 


TO 


THE  FARMERS  LOAN  AND  TRUST  COMPANY, 
OF  NEW  YORK. 


UUU  IJtttUutttlt,  made  this  First  (1st)  day  of  July,  in  the 
Year  of  Our  Lord  One  Thousand  Eight  Hundred  and  Sixty- 
Nine  (1869),  between  the  "Leavenworth,  Lawrence  and  Gal- 
veston Rail  Road  Company,"  a  Corporation  duly  organized 
under  and  in  accordance  with  the  laws  of  the  State  of  Kansas, 
party  of  the  first  part,  and  the  "Farmers  Loan  and  Trust 
Company,"  a  Corporation  duly  incorporated  and  organized 
under  the  laws  of  the  State  of  New  York,  and  by  its  Charter 
authorized  to  take  and  execute  trusts  of  the  nature  herein 
created,  party  of  the  second  part : — 

WITNESSETH,  That  WHEREAS  the  Said  "Leavenworth,  Law- 
rence and  Galveston  Rail  Road  Company,"  pursuant  to  the 
terms  of  the  Statutes  and  Acts  of  the  Legislature  of  the  said 
State  of  Kansas  creating  it,  and  of  the  organization  of  said 
Company  under  and  in  accordance  therewith,  is  engaged  in 
constructing   a   Rail   Road  from  Lawrence,  in   the   County  of 


TRUST    MORTGAGE. 


Douglass  and  State  of  Kansas,  southwards  through  the  Coun- 
ties of  Franklin,  Anderson,  Allen,  Neosho,  and  Labette,  to 
the  south  line  of  the  said  State  of  Kansas,  and  has  already 
constructed,  and  has  now  in  operation  from  Lawrence  south- 
ward, twenty-five  miles  of  its  said  Rail  Road,  and  has  graded 
and  prepared  the  road-bed  for  the  iron  to  Garnette,  a  further 
distance  of  about  twenty-five  miles,  and  will  soon  have  the 
same  in  operation ;    and 

Whereas,  by  an  Act  of  Congress  entitled  '*  An  Act  for 
the  grant  of  lands  to  the  State  of  Kansas,  in  alternate  sec- 
tions, to  aid  in  the  construction  of  certain  Rail  Roads  and 
Telegraphs  in  said  State,"  approved  March  3d,  1863,  and  a 
treaty  between  the  United  States  of  America  and  the  Great 
and  Little  Osage  Indians,  concluded  September  9th,  1865,  and 
approved  by  the  Senate  and  proclaimed  January  21st,  1867, 
and  an  Act  of  the  Legislature  of  the  State  of  Kansas  entitled 
"An  Act  to  accept  a  grant  of  lands  made  to  the  State  of 
Kansas  by  the  Congress  of  the  United  States,  to  aid  in  the 
construction  of  certain  Rail  Roads  and  Telegraphs  in  said 
State,  and  to  apply  the  same  to  the  construction  of  said  Roads 
and  Telegraphs,"  approved  February  9th,  1864,  there  were 
granted  to  the  said  Rail  Road  Company,  to  aid  in  the  construc- 
tion of  its  said  Rail  Road,  the  alternate  sections  of  land  lying 
within  a  distance  of  ten  miles  on  either  side  of  its  said  Rail 
Road,  with  the  right  to  make  up  for  any  of  such  lands  as  had 
been  theretofore  disposed  of,  or  claimed  by  exemption  under  the 
laws  of  the  United  States,  out  of  the  odd  sections  lying  on 
each  side  of  said  Rail  Road  and  within  a  distance  of  twenty 
miles  of  its  said  line,  which  said  lands  have  been  reserved  from 
sale  by  the  General  Government,  and  in  virtue  of  the  Treaties 
and  Acts  aforesaid  have  become  the  property  of  said  Rail 
Road  Company,  and  are  and  will  be  in  the  possession  of  said 
Company  as  fast  as  its  Rail  Road  shall  be  constructed  through 
the  same,  and  amounting  in  the  aggregate  to  about  Six  Hun- 
dred Thousand  Acres ;  and 


TRUST    MORTGAGE. 


5 


Whereas,  by  an  Act  of  the  Legislature  of  the  State  of 
Kansas,  entitled  "An  Act  providing  for  the  sale  of  Public 
Lands  to  aid  in  the  construction  of  certain  Rail  Roads," 
approved  February  23d,  18G6,  there  was  granted  to  the  said 
Rail  Road  Company  the  further  amount  of  One  Hundred  and 
Twenty-Five  Thousand  Acres  of  land,  with  the  proceeds  thereof 
when  sold,  and  which  last  mentioned  lands  have  been  duly  con- 
veyed to  said  Company  by  the  said  State  of  Kansas ;  and 

Whereas,  certain  of  the  Counties  along  the  line  of  the 
said  Leavenworth,  Lawrence  and  Galveston  Rail  Road  have 
issued  and  agreed  to  issue  their  Bonds  to  said  Company,  to  aid 
it  in  the  construction  of  its  said  Rail  Road,  as  follows :  The 
County  of  Douglass  have  issued  and  agreed  to  deliver  to  said 
Company  its  Bonds  to  the  amount  of  Three  Hundred  Thousand 
Dollars ;  the  County  of  Franklin,  its  Bonds  to  the  amount  of 
Two  Hundred  Thousand  Dollars  ;  the  County  of  Anderson,  its 
Bonds  to  the  amount  of  Two  Hundred  Thousand  Dollars,  and 
the  County  of  Allen,  One  Hundred  and  Twenty-Five  Thousand 
Dollars ;  making,  in  the  aggregate,  of  said  Bonds  now  issued 
and  agreed  to  be  issued  and  delivered  to  said  Company  the 
sum  of  Eight  Hundred  and  Twenty-Five  Thousand  Dollars ; 
and  the  said  County  of  Allen  is  expected  to  increase  its  amount 
to  Two  Hundred  Thousand  Dollars,  and  the  Counties  of  Neosho 
and  Labette  may,  and  are  expected  in  like  manner,  to  issue 
and  deliver  to  said  Company,  County  Bonds  to  aid  in  the  con- 
struction of  said  Road ;  all  of  which  said  Bonds  bear  interest 
at  the  rate  of  Seven  per  cent,  per  annum,  payable  annually, 
and  are  to  be  delivered  to  said  Company  as  fast  as  said  Rail 
Road  is  constructed  through  said  respective  Counties ;  and 

Whereas,  the  said  Rail  Road  Company  is  desirous  of  bor- 
rowing money  for  the  purpose  of  constructing  and  equipping 
its  said  Road,  and  paying  its  obligation  for,  and  Taxes  upon  its 
said  property  and  lands,  and  defraying  all  the  necessary 
expenses  of  right  of  way,  transportation,  and  all  other  charges 
connected   Avith   building,  equipping,  and   operating  said   Rail 


TRUST    MORTGAGE. 


Road,  and  all  llic  various  appendages  and  appurtenances  con- 
nected and  to  be  connected  therewith;  and  has  resolved  to 
execute  and  issue  the  Bonds  of  said  Company  in  sums  of  One 
Thousand  Dollars  each,  bearing  date  the  first  day  of  July, 
A.  D.  One  Thousand  Eight  hundred  and  Sixty-nine  (1869), 
and  bearing  interest  at  the  rate  of  Ten  per  cent,  per  annum, 
free  of  Government,  revenue  or  other  Tax,  and  payable  semi- 
annually with  both  principal  and  interest,  payable  in  the  City 
of  New  York,  to  an  amount  which  shall  not,  in  the  aggregate, 
exceed  Five  Millions  of  Dollars,  and  having  not  more  than 
Thirty  years  to  run  to  maturity;  and  has  also  resolved  to 
secure  the  punctual  payment  of  the  same,  both  principal  and 
interest,  by  Mortgage  or  Deed  of  Trust  of  all  the  said  lands 
and  Rail  Road,  and  all  its  corporate  property  and  franchises, 
of  every  nature  and  kind,  to  the  party  of  the  second  part, 
Trustees  and  Mortgagees,  for  the  benefit  and  security  of  the 
holders  of  said  Bonds,  all  of  which  said  Bonds  shall  bear  the 
same  date  and  are  to  be  duly  stamped  with  the  revenue  stamps 
required  by  law,  and  are  to  stand  equally  secured  by  the  said 
Deed  of  Trust,  though  issued,  sold,  and  maturing  at  different 
times,  and  shall  all  be  numbered  consecutively  from  number 
one  to  the  highest  number  which  may  be  issued  inclusive,  and 
each  of  wdiich  said  Bonds  shall  be  authenticated  by  a  certificate, 
signed  by  the  said  party  of  tlie  second  part,  as  being  issued  and 
secured  by  this  Deed  of  Trust. 

It  is,  however,  understood  and  agreed  that  this  Instrument 
and  the  said  Bonds  are  made  with  a  reservation  of  the  right  by 
tlie  said  party  of  the  first  part,  to  repay  and  retire  the  said 
Bonds,  in  whole  or  in  part,  any  time  after  the  expiration  of  five 
years  from  the  date  hereof,  by  applying  to  the  purchase  of  the 
same,  by  lot  at  par  and  accrued  interest,  the  Sinking  Fund 
created  by  this  Deed  of  Trust  or  Mortgage  in  the  manner 
herein  provided. 

Now,  tiiereforl;,  thi.s  Indenture  witncsseth,  that  the  said 
Leavenworth,  Lawrence  and  Galveston  Rail  Road  Company, 


TRUST    MORTGAGE. 


in  order  to  secure  the  payment  of  the  said  Bonds,  and  the 
interest  thereon,  and  in  consideration  of  the  sum  of  Five 
Dolhirs  to  it  in  hand  paid  by  the  said  party  of  the  second  part, 
at  the  ensealing  and  delivery  of  these  presents,  the  receipt  of 
which  is  hereby  acknowledged,  has  granted,  bargained,  sold, 
transferred,  and  conveyed,  and  by  these  presents  does  hereby 
grant,  bargain,  sell,  transfer,  and  convey  to  the  said  party  of  the 
second  part,  its  successors  and  assigns,  all  the  following  and  all 
the  above  described  property,  to  wit:  All  the  right,  title,  and 
interest  of  the  said  party  of  the  first  part  in  and  to  the  lands  of 
said  Rail  Road  Company  granted  by  the  said  act  of  Congress 
and  by  the  act  of  the  Legislature  of  the  State  of  Kansas  above 
mentioned,  to  aid  in  the  construction  of  said  Road,  as  above 
described,  and  being  alternate  and  odd  sections  of  land  lying  on 
either  side  of  said  Road,  and  within  a  distance  of  twenty  miles 
thereof,  and  amounting,  as  near  as  can  now  be  estimated,  to  Six 
Hundred  Thousand  acres.  But  all  the  lands  granted  by  said  acts 
to  aid  in  the  construction  of  said  Road,  are  intended  to  be  and 
are  hereby  included  in  this  conveyance,  whether  the  same  be 
more  or  less  than  that  amount.  Also,  all  the  lands  conveyed 
to  said  Rail  Road  Company  by  an  act  of  the  Legislature  of  the 
State  of  Kansas,  passed  and  approved  on  the  twenty-third  day 
of  February,  A.  D.  1866,  above  named,  and  being  in  amount 
One  Hundred  and  Twenty-five  Thousand  acres  of  land,  more 
or  less;  also,  all  the  bonds  of  the  said  counties  through  which 
said  Rail  Road  runs,  now  issued  or  which  may  be  hereafter 
issued  and  delivered  to  said  Company,  to  aid  in  the  construction 
of  its  said  Rail  Road,  a  list  of  which  is  to  be  made  and  certi- 
fied, and  given  to  the  said  party  of  the  second  part,  and  the 
said  Bonds  delivered  to  it.  Also,  all  the  present,  and  in  future 
to  be  acquired  property  of  the  said  Rail  Road  Company,  and 
all  the  right,  title,  interest  and  e({uity  of  redemption  therein, 
that  is  to  say,  all  the  Rail  Road  of  the  said  party  of  the  first 
pai't  now  made  and  in  operation,  and  all  the  Rail  Road  yet  to 
be  constructed,  including  the  right  of   way,  road-bed,   super- 


8  TRUST    MORTGAGE. 


Structure,  iron,  ties,  splices,  chairs,  bolts,  nuts,  spikes,  all 
lands  and  Depot  grounds,  Station  houses  and  Depots,  viaducts, 
bridges,  timber  and  materials,  and  property  purchased  or  to  be 
purchased  for  the  construction  or  equipment  of  said  road,  all 
the  engines,  tenders,  cars  and  machinery,  and  all  kinds  of  roll- 
ing stock,  Avhether  now  owned  or  to  be  purchased  by  said 
party  of  the  first  part  in  the  future,  and  all  the  revenues  and 
income  of  said  Rail  Road  and  property,  and  all  the  franchises 
and  rights  of  the  said  party  of  the  first  part,  and  all  property 
acquired  by  virtue  of  and  under  the  authority  thereof,  now  in 
possession  or  to  be  hereafter  acquired,  including  all  machine 
shops,  tools,  implements,  and  personal  property  used  therein, 
or  upon  or  along  the  line  of  said  Rail  Road,  or  at  its  stations, 
or  any  of  them,  wherever  situated,  and  including  all  appur- 
tenances and  appendages  of  said  Rail  Road  and  the  property 
of  said  Company,  and  all  its  rights  and  privileges  therein  and 
pertaining  thereto. 

To  HAVE  AND  TO  HOLD  the  Said  lands,  bonds  and  property, 
all  and  singular,  and  the  said  premises,  and  every  part  thereof, 
with  the  appurtenances,  unto  the  said  party  of  the  second  part, 
its  successors  in  said  trust,  and  assigns. 

But  upon  the  following  express  trust,  that  is  to  say  :  In 
case  the  said  Leavenworth,  Lawrence  and  Galveston  Rail  Road 
Company  shall  fail  to  pay  the  principal  or  any  part  thereof,  or 
the  interest,  or  any  part  thereof,  Avhich  may  fall  due  upon  any 
of  said  Bonds,  secured,  and  intended  to  be  secured  hereby,  at 
any  time  when  and  where  the  same  may  become  due  and  pay- 
able, according  to  the  tenor  and  effect  thereof,  and  for  thirty 
days  thereafter,  then  and  in  that  case  all  of  said  Bonds  shall 
thereupon  immediately  become  due  and  payable,  and  it  shall 
be  competent  and  lawful  for  the  said  party  of  the  second  part, 
its  successors  in  said  trust  and  assigns,  to  enter  upon  and  take 
possession  of  the  said  premises,  and  every  part  and  parcel 
thereof,  including  said  lands  and  Road  and  appurtenances  ;  and 
upon  the  written  request  of  the  holders  of  one-tenth  part  of 


TRUST    MORTGAGE.  9 


the  Bonds,  which  may  be  at  any  time  outstanding  and  unpaid,  it 
shall  be  the  duty  of  the  said  party  of  the  second  part,  its  suc- 
cessors or  assigns,  to  enter  upon  and  take  possession  of  all  and 
singular,  the  said  Rail  Road  and  property  above  described,  and 
as  the  attorney  in  fact,  or  agent  of  the  said  party  of  the  first 
part,  by  itself,  or  its  agents  duly  constituted,  have,  use  and 
employ  the  Rail  Road  and  its  appurtenances  and  property 
thereto  belonging  and  proper  for  its  use,  making,  from  time  to 
time,  all  needful  repairs,  alterations  and  additions  thereto, 
and  after  deducting  the  expenses  of  such  repairs,  alterations 
and  additions,  apply  the  proceeds  of  said  premises  to  the  pay- 
ment, pro  rata,  of  the  principal  and  interest  of  all  of  said  Bonds 
remaining  unpaid;  and,  also,  to  have  and  possess  all  of  the 
said  lands  and  all  obligations  and  securities  which  may  have 
been  received  for  any  such  as  may  have  been  sold,  and  shall 
hold  all  of  said  County  Bonds  conveyed  by  this  instrument,  and 
which  may  then  remain  unsold,  and  all  other  property  con- 
veyed hereby,  or  intended  to  be  conveyed,  and  receive  the 
avails  thereof,  and  the  proceeds  of  the  sales  thereof,  and  the  in- 
terest of  all  such  securities,  and  after  paying  all  proper  expenses 
connected  with  the  management  and  care  of  the  same,  including 
Taxes  and  all  expenses  necessary  to  the  care  of  and  due  admin- 
istration of  the  trust  hereby  created,  relative  thm-eto,  and 
indemnifying  itself,  as  aforesaid,  apply  the  surplus  moneys  in 
the  manner  above  stated  in  payment  of  said  principal  and 
interest  moneys  which  may  be  unpaid  upon  said  Bonds ;  or 
the  said  party  of  the  second  part,  its  successors  in  the  said 
trust  and  assigns,  at  their  discretion,  may,  and  on  the  written 
request  of  the  holders  of  one-tenth  of  said  Bonds  then  unpaid, 
sliall  cause  the  said  premises,  including  said  lands  and  securi- 
ties, or  so  much  thereof  as  shall  be  by  them  deemed  necessary 
to  pay  and  discharge  the  principal  and  interest  of  such  of  said 
Bonds  as  may  be  unpaid,  together  with  all  tlie  expenses  of  said 
sale,  to  be  sold  at  public  auction,  at  Topeka,  in  Kansas,  giving 
Thirty  days'   notice  of  the  time  and  place  and  terms  of  such 


10  TRUST    MORTGAGE. 


sale,  by  publishing  the  same  in  one  of  the  principal  newspapers, 
for  the  time  being,  in  each  of  the  Cities  of  Boston  and  New 
York  ;  and  upon  such  sale  to  execute  to  the  purchaser  or  pur- 
chasers thereof  good  and  sufficient  deed  or  deeds  of  conveyance 
in  fee  simple  for  the  same,  which  shall  be  a  bar  against  the 
said  Leavenworth,  Lawrence  and  Galveston  Rail  Road  Com- 
pany, party  of  the  first  part,  its  successors  and  assigns,  and 
all  persons  claiming  under  it,  or  them,  of  all  right,  interest, 
or  claim  in  or  to  the  said  premises  and  property,  or  any  part 
thereof;  and  the  said  Trustee  shall,  after  deducting  from  the 
proceeds  of  said  sale  the  costs  and  expenses  thereof,  and  of 
managing  the  said  propert}'',  and  enough  to  indemnify  and  save 
itself  harmless  from  and  against  all  liabilities  arising  from  this 
trust,  apply  so  much  of  the  proceeds  of  the  said  property  as 
may  be  necessary  to  the  payment  of  the  principal  and  interest 
of  the  said  Bonds  unpaid,  and  shall  restore  the  residue  thereof 
to  the  party  of  the  first  part.  It  being  expressly  understood 
and  agreed  that  in  no  case  shall  any  claim  or  advantage  be 
taken  of  any  valuation,  appraisement,  redemption,  or  extension 
laws,  by  said  party  of  the  first  part,  its  successors  or  assigns, 
nor  any  injunction  or  stay  of  proceedings  be  had,  or  any 
process  be  obtained  or  applied  for  by  it  or  them,  to  prevent 
such  entry,  sale  and  conveyance  as  aforesaid. 

It  is  hereby  expressly  agreed  and  understood  that  it  shall 
be  lawful  for  the  said  Rail  Road  Company,  or  its  successors, 
to  dispose  of  the  current  net  revenues,  except  as  herein  other- 
wise provided,  of  the  Rail  Road  hereby  conveyed,  in  such 
manner  as  it  shall  elect,  until  default  shall  be  made  in  the  pay- 
ment of  the  principal  or  interest  of  said  Bonds,  or  of  some  one 
of  them. 

And  it  is  hereby  expressly  agreed  :ind  understood,  and  it  is 
one  of  the  terms  of  this  conveyance  and  Deed  of  Trust,  tliat  all 
the  lands  above  described  and  hereby  conveyed,  or  intended  to 
be  conveyed,  as  well  those  derived  from  the  Government  of  the 
United  States   through  the  Treaty  and  Act  of  Congress,  and 


TRUST    MORTGAGE.  11 


the  Legislature  of  the  State  of  Kansas,  hereinbefore  mentioned, 
as  those  derived  from  the  State  of  Kansas  in  manner  aforesaid, 
shall  be  scaled  and  appraised  at  such  price  as  may  be  deemed 
to  be  just  and  reasonable  by  both  the  parties  hereto,  and  a 
minimum  price  fixed  thereupon,  at  which  they  may  be  sold, 
either  for  cash,  or  part  cash,  or  partly  on  credit,  or  wholly  on 
credit,  as  may  be  deemed  just  and  expedient,  but  such  mini- 
mum price  may  be  changed,  if  thought  advisable,  by  the  joint 
action  of  the  said  party  of  the  first  part  and  party  of  the 
second  part,  their  successors  and  assigns. 

And  as  the  object  of  this  Indenture  is  to  provide  a  fund 
for  the  full  payment  of  said  Bonds,  both  principal  and  interest, 
and  not  to  withhold  from  settlement  and  sale  said  lands,  but 
on  the  contrary  to  sell  the  same  to  act;ial  settlers  as  rapidly  as 
possible,  and  thus  bring  them  into  cultivation  and  improvement, 
it  is  expressly  understood  that  the  said  party  of  the  first  part 
shall  establish  an  office  for  the  sale  of  said  lands,  at  some 
convenient  place  where  the  same  shall  be  ofi"ered  for  sale,  at  not 
less  than  the  minimum  price  put  thereupon;  but  that  deeds  of 
conveyance  for  said  lands,  or  any  parts  thereof,  shall  only  be 
made  when  the  whole  purchase  price  agreed  upon  shall  be  paid 
for  the  same ;  and  that  in  all  cases  where  the  purchase  money 
shall  not  be  paid  down  at  the  time  of  the  contract  of  purchase, 
a  contract  in  such  form  as  shall  be  directed  by  the  Board  of 
Directors  and  counsel  of  the  said  party  of  the  first  part,  shall 
be  executed  to  the  party  purchasing  said  lands,  or  any  of  them, 
setting  forth  clearly  the  terms  of  sale  and  the  payments  to  be 
made,  and  the  conditions  upon  which  the  purchaser  shall  be 
entitled  to  a  full  deed  conveying  the  lands  specified  in  said 
contract  to  the  said  purchaser,  his  heirs  and  assigns. 

And  whereas,  it  is  important  that  every  purchaser  shall 
be  sure  of  his  title,  and  that  the  conveyance  thereof  shall  not 
be  impeded  or  restricted  by  unnecessary  formalities,  it  is, 
therefore,  the  express  understanding  that  the  said  party  of  the 
first  part  shall   be  so  far  the  agent  of  the  said  party  of  the 


12  TRUST    MORTGAGE. 


second  part,  its  successors  in  said  trust  and  assigns,  that  the 
deed  of  the  said  first  party,  duly  executed  and  acknowledged, 
shall  operate  as  a  release  of  the  tract  of  land  so  sold  from  the 
operation  and  effect  of  this  Indenture  and  Deed  of  Trust,  and 
convey  a  full  and  perfect  title ;  and  the  said  party  of  the  first 
part  shall  have  this  authority  and  power,  in  the  name  of  the  said 
second  party  and  its  successors,  to  release  the  titles  of  land 
sold,  or  contracted  to  be  sold,  on  payment  therefor,  from  the 
operation  of  this  Mortgage  or  Deed  of  Trust,  until  breach  of 
the  condition  of  this  Instrument,  or  until  a  revocation  of  this 
authority  is  made  and  dul}'-  recorded  in  every  county  where 
said  lands  lie ;  and  when  any  purchaser  of  said  lands,  or  any 
part  thereof,  shall  have  paid  in  full  the  price  agreed  to  be  paid 
for  the  same,  to  the  sai,d  party  of  the  first  part,  its  successors 
or  assigns,  he  shall  be  entitled  to  receive,  and  shall  receive,  a 
deed  in  fee  simple  for  said  lands,  free  and  clear  of  this  incum- 
brance and  Deed  of  Trust,  in  the  manner  above  specified. 

And  the  said  party  of  the  first  part  hereby  agrees  that  all 
the  money  realized  upon  any  contract  of  sale  shall  be  appro- 
priated to  the  purpose  of  providing  for  the  payment  of  the 
said  Bonds,  principal  and  interest;  and  that  an  account  of  all 
such  sales,  or  contracts  of  sales  made,  and  of  all  moneys 
realized  from  the  sale  of  said  contracts,  shall,  once  in  three 
months,  be  made  up  and  placed  in  the  hands  of  the  said  party 
of  the  second  part,  its  successors  in  said  trust  or  assigns,  and 
all  moneys  realized  from  said  sales  paid  over  to  said  second 
party,  and  the  said  second  party,  personally  or  by  its  agents 
and  attorneys  duly  appointed,  shall  at  all  times  have  access  to 
the  books  and  papers  and  records  of  the  laud  office  of  the  said 
party  of  the  first  part. 

It  is  hereby  expressly  agreed  and  understood,  that  the 
County  Bonds  herein  mentioned  and  intended  to  be  convoyed 
may  be  sold  at  such  time  or  times,  and  on  such  terms,  and  for 
such  prices  as  may  be  mutually  agreed  upon  by  the  parties 
hereto.     And  it  is  also  hereby  agreed  and  understood,  by  and 


TRUST    MORTGAGE. 


13 


between  the  parties  hereto,  that  the  proceeds  of  the  sale  of  all 
the  said  lands  herein  described,  and  of  all  securities  received 
therefor,  and  the  proceeds  of  all  said  County  Bonds,  and  all 
collections  thereon,  shall  constitute  a  Sinking  Fund  in  the  hands 
of  the  said  party  of  the  second  part,  its  successors  or  assigns, 
to  be  applied,  during  the  first  five  years  from  the  date  hereof, 
to  the  payment  of  the  interest  on  the  Bonds  of  the  said  first 
party,  intended  to  be  secured  hereby ;  and  that  any  and  all 
surplus  beyond  the  amount  requisite  for  that  purpose  shall,  for 
that  time,  accumulate  in  their  hands  and  be  invested  in  such 
securities — at  all  times  convertible  into  money — as  from  time 
to  time  may  be  agreed  upon  in  writing  by  the  parties  hereto ; 
and  out  of  such  accumulation,  the  party  of  the  second  part 
may  reserve  One  Hundred  Thousand  Dollars  as  a  contingent 
fund,  to  provide  for  possible  contingencies  in  the  payment  of 
interest  and  otherwise  relative  to  said  Bonds,  which  said  sum 
may  be  kept  and  maintained  and  invested  in  such  securities  as 
the  parties  hereto,  or  their  successors,  may  mutually  agree 
upon  ;  and  at  the  end  of  said  five  years,  if  such  accumulation 
shall  amount  to  Two  Hundred  Thousand  Dollars  or  upwards, 
over  and  above  the  said  reserved  fund  for  contingencies,  and 
thereafter  and  as  often  as  it  shall  amount  to  Two  Hundred 
Thousand  Dollars  above  that  sum  the  same  shall  be  applied  in 
the  payment  and  retirement  of  said  Bonds,  at  par  value  thereof 
and  accrued  interest  thereon,  which  said  Bonds,  so  to  be  paid 
from  time  to  time,  shall  be  determined  by  lot  in  such  manner 
as  shall  be  just  and  fair  and  as  shall  be  agreed  upon  in  writing 
by  the  parties  hereto  or  their  successors,  and  recorded  at  length 
upon  the  records  of  the  parties,  and  open  for  examination 
to  the  holders  of  said  Bonds;  and  when  and  as  soon  as  the 
numbers  of  said  Bonds  thus  to  be  paid  and  retired  shall  have 
been  determined  by  lot,  in  manner  aforesaid,  from  time  to  time, 
it  shall  be  the  duty  of  the  said  party  of  the  second  part,  and 
its  successors  in  said  trust,  to  publish  a  notice  thereof  in  each 
of  the  Cities  of  Boston  and  New  York  for  three  weeks  succes- 


14  TRUST    MORTGAGE. 


sively,  once  in  each  week,  stating  therein  the  time  and  place 
in  each  of  said  Cities  when  the  said  Bonds  will  be  paid,  and 
requesting  their  presentation  for  payment  at  said  time  and 
place ;  and  after  the  expiration  of  said  time  the  said  Bonds  so 
numbered  and  drawn  shall  cease  to  bear  interest,  and  the  said 
party  of  the  first  part  shall  not  be  liable  for  interest  accruing 
subsequently  to  that  time,  but  shall  be  rec^uired  to  pay  the 
principal  of  said  Bonds  on  presentation. 

And  the  said  party  of  the  first  part  hereby  agrees  that 
any  failure  to  render  the  quarterly  statement  of  the  contract 
and  sale  of  lands  as  herein  provided,  and  of  the  expenses 
connected  with  said  lands,  and  any  failure  to  pay  over  the 
money  received  from  said  lands  to  the  said  party  of  the  second 
part,  or  its  successors  in  said  trust,  every  three  months,  upon 
such  statement;  and  any  refusal  to  allow  an  examination  of 
the  Books  of  the  said  party  of  the  first  part,  as  herein 
provided,  shall  be  deemed  to  be  a  forfeiture  of  the  conditions 
of  this  Deed  of  Trust,  and  thereupon  the  said  party  of  the 
second  part,  its  successors  in  said  trust  and  assigns,  may  enter 
upon  and  take  possession  of  the  premises  and  property  herein 
described,  and  have  and  hold  the  same  Avith  the  same  rights 
and  powers,  and  in  the  same  manner,  and  upon  the  like 
request  of  the  Bondholders  as  in  the  case  of  failure  to  pay  the 
principal  or  interest  on  the  Bonds  hereby  secured,  and  there- 
upon shall  be  entitled  to  the  possession  and  control  of  the 
property  above  described,  and  of  all  contracts  or  securities 
received  for  lands  sold,  or  contracted  to  be  sold,  to  be  held 
and  maiKiged  or  sold  under  the  powers  herein  contained,  for 
the  benefit  of  the  holders  of  said  Bonds. 

And  the  said  party  of  the  first  part,  for  itself  and  its 
successors,  hereby  covenants  and  agrees  to  execute  and  deliver 
any  further  reasonable  or  necessary  conveyance  of  the  said 
premises,  or  any  part  thereof,  to  the  said  party  of  the  second 
part,  its  successors  and  assigns,  for  more  fully  carrying  into 
eflect    the    objects    and    purposes   of    these    presents,    and   of 


TRUST    MORTGAGE. 


15 


making  them  embrace  the  property  and  oftccts  herein  described 
and  intended  to  be  conve^'^ed. 

It  is  hereby  mutually  agreed  that,  upon  the  payment  of 
the  principal  and  interest  of  said  Bonds,  the  estate  hereby 
granted  to  said  party  of  the  second  part  shall  be  void,  and 
the  right  to  the  premises  hereby  conveyed  shall  revert  to  and 
revest  in  said  party  of  the  first  part,  its  successors  or  assigns, 
without  any  acknowledgement  of  satisfaction,  re-conveyance, 
re-entry  or  other  act;  and  that  said  party  of  the  second  part, 
its  successors  in  said  trust  and  assigns,  shall  only  be  account- 
able for  reasonable  diligence  in  the  management  thereof,  and 
shall  not  be  responsible  for  the  acts  of  any  agent  employed  by 
them,  when  such  agent  shall  have  been  employed  with  reason- 
able precaution,  and  that  the  said  second  party,  and  its  succes- 
sors in  said  trust  and  assigns,  shall  be  entitled  to  reasonable 
compensation  for  their  services  in  the  management  of  said 
trust. 

It  is  hereby  further  mutually  agreed,  that  in  case  of  a 
failure  for  any  cause,  or  refusal  to  act  in  the  matter  of  said 
trust,  by  the  said  party  of  the  second  part,  its  right,  estate, 
interest,  power  and  control  in  the  premises  shall  be  divested, 
cease  and  determine,  and  the  holders  of  a  majority  of  said 
Bonds  may  thereupon  apply  to  any  Court  in  the  State  of 
Kansas  having  jurisdiction  of  the  premises,  to  appoint  some 
proper  person  or  persons  to  act  as  Trustee  or  Trustees  herein ; 
and  such  new  Trustee  or  Trustees,  Avhcn  appointed,  shall 
become  vested,  for  the  purposes  aforesaid,  with  all  the  right, 
interest  and  power  requisite  to  enable  him  or  them  to  execute 
the  purposes  of  this  trust,  without  any  further  or  other 
authority,  release  or  conveyance  for  the  same.  But  should  it 
be  desirable  or  necessary,  the  said  parties  hereto  shall  each 
execute  and  deliver  such  releases  and  conversances  as  Counsel 
learned  in  the  law  shall  deem  advisable. 

And  the  said  party  of  the  second  part  hereby  accepts  the 
trust  created  by  these  presents. 


.^Wa 


16 


TRUST    MORTGAGE. 


In  witness  avhereof,   the   said   Leavenworth,   Lawrence 

and  Galveston  Rail  Road 
Company  has  caused  its 
corporate  seal,  to  be  hereto 
affixed,  and  its  corporate 
name  to  be  hereto  sub- 
scribed by  its  President, 
the  day  and  year  first 
above  written,  and  the  said 
second  party  on  the  same 
day  and  year  has  caused 
its  Corporate  Seal  to  be 
hereto  affixed,  and  the 
same  to  be  subscribed  by  its  President. 


THE  LEAVENWORTH,  LAWRENCE  AND  GAL- 
VESTON RAIL  ROAD  COMPANY,  by 

JAMES   F.  JOY, 

President. 


Attest : 


AMOS   T.   HALL, 

Secretary. 


Attest : 


THE  FARMERS  LOAN  AND  TRUST 
COMPANY  OF  NEW  YORK,  by 

R.  G.  ROLSTON, 

President. 


GEO.    P.    FITCH, 

Secretary. 


TRUST    MORTGAGE. 


17 


State,  City  and  County  1 
OF  New  York,  j 

On  the  26th  day  of  July,  A.  D.  1869,  before  me  came 
R.  G.  RoLSTON,  whose  name  is  subscribed  to  the  foregoing 
instrument,  and  with  whom  I  am  well  acquainted,  known 
to  me  to  be  the  President  of  the  Farmers  Loan  and  Trust 
Company,  who,  having  been  by  me  duly  sworn,  says  that  the 
seal  which  is  affixed  to  said  instrument  is  the  corporate  seal  of 
said  Farmers  Loan  and  Trust  Company ;  that  it  was  so  affixed 
by  the  authority  of  said  corporation,  and  that  he  subscribed 
his  name  thereto  by  the  like  authority,  and  that  he  resides  in 
the  city  of  New  York. 

Given  under  my  hand  and  official   seal   this    26th  day  of 
July,  1869. 


JAMES  W.  HALE, 

Public  Notary^ 
54  Wall  Street. 


18  TRUST    MORTGAGE. 


State  of  Illinois,  ) 

'  y  ss. 

County  of  CooTc,    j 

City  of  Chicago. 

Be  it  remembered  that  on  this  twelfth  day  of  July,  A.  D. 
1869,  before  me,  a  Commissioner  residing  in  the  city  of 
Chicago,  County  of  Cook,  and  State  of  Illinois,  duly  commis- 
sioned by  the  Governor  of  the  State  of  Kansas,  to  take 
acknowledgments  and  proof  of  deeds,  and  other  instruments 
in  writing,  under  seal,  to  be  used  or  recorded  in  said  State  of 
Kansas,  personally  came  James  F.  Joy,  President  of  the 
Leavenworth,  Lawrence  and  Galveston  Rail  Road  Company, 
who  is  known  to  me  to  be  the  person  whose  name  is  signed  to 
the  foregoing  Deed  of  Conveyance,  who  being  by  me  duly 
sworn,  deposes  and  says :  That  he  resides  in  Detroit,  in  the 
County  of  Wayne,  and  State  of  Michigan  ;  that  he  is  Presi- 
dent of  the  Leavenworth,  Lawrence  and  Galveston  Rail  Road 
Company ;  that  he  knows  the  Corporate  Seal  of  said  Com- 
pany ;  that  the  Seal  affixed  to  the  foregoing  Conveyance  ■  is 
the  Corporate  Seal  of  said  Company  ;  that  it  was  affixed  by 
order  of  said  Company,  and  that  he  signed  his  name  to  said 
Conveyance  by  like  order,  as  President  of  said  Company,  and 
acknowledged  that  he  executed  and  delivered  the  said  deed  as 
his  free  and  voluntary  act,  for  the  uses  and  purposes  therein 
set  forth,  and  that  the  said  Company  also  executed  said  Con- 
veyance as  its  free  and  voluntary  act,  for  the  uses  and  purposes 
therein  set  forth. 

In  witness  whereof  I  have  hereunto  set  my  hand  and 
Official  Seal  this  twelfth  day  of  July, 
A.  D.  18G9. 


PHILIP  A.  IIOYNE, 
Commissioner  for  Kansas  in  Chicago. 


The  foregoing  instrument  was  duly  recorded  in  the  coun- 
ties of  Douglass,  Franklin,  Anderson,  Allen,  Neosho  and 
Labette  before  any  of  the  bonds  secured  thereby  were  issued. 


AMOS  T.  HALL, 


Secretary. 


• 


N. 


